Tax panel awash in plans
By Francis X. Quinn, Associated Press Writer | May 3, 2005

AUGUSTA, Maine (AP -- Tax reform, highly touted but not always universally defined, returned front and center to the Legislature on Tuesday amid some questioning of whether the time was right.

Business representatives lined up to testify against portions of proposed legislation that could eliminate exemptions or impose new liabilities.

"Shifting taxes, as all these tax reform proposals do, creates winners and losers, which does not advance our state's economy forward," said David Brenerman of UnumProvident Corporation in prepared remarks.

"These bills certainly do not lower our overall tax burden, and, as you can see, they result in a massive increase in tax burden for my company."

With six bills on the table, the Taxation Committee hearing was a free-for-all, with commentators addressing elements of one or more bills or even the general topic of tax reform.

Not all the pertinent legislation was ready for comment. Gov. John Baldacci's own measure, which would include phasing out the personal property tax on business equipment, may not be heard until next week.

Already, however, some observers are wondering if lawmakers who have already passed major school funding legislation designed to ease local property tax pressures have much appetite left for another substantial go-round on taxes.

"From afar, it's very difficult," said the House chairman of the Appropriations Committee, Democratic Rep. Joseph Brannigan of Portland.

Others were more pointedly skeptical.

"I don't see the fire in the belly for reform," said Geoff Herman of the Maine Municipal Association.

"I doubt it. I don't see how," said Senate Minority leader Paul Davis, R-Sangerville.

Leading a push for a significant structural overhaul of Maine's tax system are the co-chairmen of the Taxation Committee, independent Rep. Richard Woodbury of Yarmouth and Democratic Sen. Joseph Perry of Bangor.

Woodbury described the main thrust of the approach Tuesday as an effort to broaden the base of the sales tax and lower its rate.

The chairmen's plan would lower the sales tax to 4 percent while broadly expanding it to include untaxed items including grocery staples, energy fuels and amusements, and set the state income tax at a flat 6 percent.

The proposal also would boost levies on beer, wine, cigarettes, bar drinks, prepared meals and lodging.

Other lawmakers have also put forth proposals focusing on the sales tax and on so-called sin taxes.

One sponsor, Democratic Rep. Sean Faircloth of Bangor, told the committee at the public hearing that raising levies on such items as cigarettes and alcoholic beverages could not only raise revenue for the state but have positive ancillary effects.

"When you increase the price ... it does affect the conduct of teens and young people," Faircloth said.

Baldacci has called for an immediate downward nudge to Maine's highest income tax rate, as well as a gradual elimination of the personal property tax on business equipment.

How quickly these idiots think we forget, or maybe they think we don't know at all.  But we DO know!

The Tobacco Settlement money which is feeding BILLIONS of cigarette tax dollars into the state of Maine is being paid 100% by the smoker's in Maine who pay taxes on cigarettes.  Not Big Tobacco and not the government. The smokers!

Just what are the lawmakers doing with these billions already?  Why do they think they need to rape Maine smokers once again? 

Here is a link to show just what Maine smoker's are contributing to the state economy:

Maine Smokers Contributions from cigarette taxes paid into Maine